HAPFS - Overview

Permanent employees.

All employees aged between 18 and 65 who have completed 60 days or more of employment with HA.

HA's current contribution rate is 15% of basic salary.

You are not required to make any contribution.

Mandatory Provident Fund Schemes Ordinance requires that both the employer and the employee make mandatory contribution* for an amount equivalent to 5% of the employee relevant income^ up to a maximum income cap of $30,000. Employees with a relevant income less than $7,100 in a particular month are not required to make mandatory contribution for that particular month. As an MPF Scheme member, you are required to make employee mandatory contribution. You may also make employee voluntary contribution to your MPF account. 

To ensure the same contribution level is maintained in both the HAPFS and the MPF Scheme, HA's 15% contribution is broken down into the following 3 components in the MPF Scheme:

1. employer mandatory contribution; 
2. MPF Supplementary Payment, which is equal to the amount of the employee mandatory contribution that you are required to make; and 
3. an amount of employer voluntary contribution# equivalent to the balance of 15% of your basic salary minus the above employer mandatory contribution and MPF Supplementary Payment.

• If you leave HA and your last date of employment is notified to the HAPFS Trustees prior to a designated cut-off time in the calendar month preceding your month of departure (Cut-off Time), your balance will be redeemed based on the valuation as at the last calendar day of the month prior to your last date of employment.
• However, if your last date of employment is only notified to the HAPFS Trustees after the Cut-off Time, your balance will be redeemed on the next available valuation date in the month of your departure and the payment of the benefits to you may take longer.

If you joined HAPFS on or before 1.12.2000.......

• on leaving HA services, except as a result of dismissal, you will receive a lump sum. In case of retirement, you may withdraw your entire account balance in full.
• If you are summarily dismissed from employment, you will only be entitled to the Minimum MPF Benefit *, which will still be paid to you in a lump sum.

If you joined HAPFS after 1.12.2000 .......

• Upon leaving HA, an amount equivalent to the MMB shall be preserved until you meet any of the withdrawal criteria under the MPFSO. However, you will receive a lump sum equivalent to the vested portion of your account balance in excess of the MMB.
• If you are summarily dismissed from employment, you will only be entitled to the Minimum MPF Benefit (MMB). However, such MMB shall be preserved until you meet any of the withdrawal criteria under the Mandatory Provident Fund Schemes Ordinance.

*  An amount which is the lesser of:

1) The member's benefits accrued in an ORSO scheme when the exemption certificate applied and;

2) 1.2 x final average monthly relevent income (maximum of HK$30,000)
x years of post-MPF service.

For thoese employees who join an MPF exempted ORSO scheme after
1 December 2000, their MMB is subject to preservation and portability
requirements of the MPF system. This means their MMB must be tranferred
to an MPF scheme and cannot be withdrawn until the age of 65 or any of
the qualifying conditions. Benefits accrued in excess of MMB can be paid to members under the corresponding ORSO scheme rules.

(A) Mandatory Contribution

• When you leave HA, you may transfer all the employer and employee mandatory contribution balance to:
  1. a personal account# in the Invesco Strategic MPF Scheme; or 
  2. the MPF scheme in which your new employer participates; or 
  3. any other registered MPF scheme of your choice. 

• All mandatory contribution balance can only be withdrawn under the withdrawal criteria specified under the Mandatory Provident Fund Schemes Ordinance, including:
  1. Retirement at the age of 65* 
  2. Early retirement at the age of 60* 
  3. Permanent departure from Hong Kong 
  4. Total incapacity 
  5. Death 
  6. Terminal Illness 
  7. Small balance in the MPF scheme account(s). This applies when the accrued benefits are equal to or less than $5,000 and no mandatory contributions are paid over the past 12 months and there are no accrued benefits in other MPF schemes. 

*Members who reach the age of 65 or retire after the age of 60 may elect to have his Eligible Benefits derived from mandatory and, where applicable, voluntary contributions paid in a lump sum or by instalments. 

(B) Voluntary Contribution

• You may withdraw all the employee voluntary contribution balance when you leave HA. The employer voluntary contribution balance will be released subject to the vesting scale of the MPF Scheme.
• If you are summarily dismissed from employment, you will not be entitled to any employer voluntary contribution balance.

# An MPF account type. When an MPF member changes his employment, he may wish to keep his
accrued benefits in a personal account under the smae master trust scheme. Personal account
members may transfer their balance under their personal account to another master trust at anytime.

Scheme Arrangement

Trust

Trust

Governing Law

Hong Kong

Hong Kong

Name of Trustee

• Mr Philip TSAI Wing-chung BBS, JP (Chairman)
• Ms Anita CHAN Shuk-yu 
• Mr Charlie CHAN Chor-wing UCH* 
• Mr Alex CHU Wing-yiu 
• Mrs Ann KUNG YEUNG Yun-chi JP
• Ms Antonia LEE Yuen-chee TWH* 
• Mr David MAK Chi-wai 
• Mr Dave NGAN Man-kit CFA 
• Mr Samson QUEK Yat-sum TMH* 
• Mr WONG Kwai-huen BBS, JP 
• Mr Jason YEUNG Chi-wai 
• Dr Joseph YEUNG Shing TKOH* 

* Employee Trustee

• Bank Consortium Trust Company Limited

Name of Administrator

HSBC Institutional Trust Services (Asia) Limited

Bank Consortium Trust Company Limited

Nature of Scheme

Defined Contribution*

* A type of retirement scheme in which members' benefits are determined by the contributions
made by employers and / or employees, plus any
investment returns (or interests paid). As required by law, all MPF schemes are defined contribution
schemes.

Defined Contribution*

* A type of retirement scheme in which members' benefits are
determined by the contributions made by employers and / or
employees, plus any investment returns (or interests paid). As
required by law, all MPF schemes are defined contribution schemes.

Eligibility to Join Scheme

Permanent employees

All employees aged between 18 and 65 who have completed 60 days or more of employment with HA

Contribution

HA's current contribution rate is 15% of basic
salary. 

Members are not required to contribute.

For permanent employees, HA will  

1. make employer mandatory contribution, 
2. provide MPF Supplementary Payment, which is equivalent to the employee mandatory contribution and
3. make employer voluntary contribution which is equal to the balance of 15% of the members basic salary minus the sum of items a) and b). 

For non-permanent employees, HA will only make employer
mandatory contribution.

All members are required to make employee mandatory contribution. HA shall deduct such amount from the members monthly payroll.

Definition of Income for the Purpose of
contribution

Basic Salary

Relevant Income

Vesting Rights

Subject to HAPFS's vesting scale.

Full and immediate vesting for mandatory contribution and employee voluntary contribution. 

Employer voluntary contribution is subject to the scheme's vesting
scale.

Payment of Benefits

At retirement, death, disability, redundancy, or
termination of service.

Mandatory contribution* balance will only be paid under the withdrawal criteria specified under the Mandatory Provident Fund Schemes
Ordinance.

* The amount which must be paid to MPF schemes by employers and employees as required under the MPF system.

Portability and Preservation of Benefits

Members who chose to join the HAPFS must
preserve their MMB in accordance with the
Mandatory Provident Fund Schemes Ordinance.

Mandatory contribution* balance must preserve in accordance with
the Mandatory Provident Fund Schemes Ordinance.

* The amount which must be paid to MPF schemes by employers and employees as required under the MPF system.

Normal Retirement Age

60

60

Investment Choice

 6 investment choices:

• Global Equity Fund
• Growth Fund
• Balanced Fund
• Conservative Fund
• Global Bond Fund
• Money Market Fund 

The Default Investment Strategy and 12 investment choices:

• Hong Kong and China Equity Fund
• Invesco Hang Seng Index Tracking Fund 
• Asian Equity Fund 
• Growth Fund 
• Balanced Fund
• Core Accumulation Fund 
• RMB Bond Fund 
• Capital Stable Fund
• Age 65 Plus Fund 
• Global Bond Fund 
• Guaranteed Fund 
• MPF Conservative Fund 

Investment Risk

Borne by members

Borne by members

Scheme Expenses

Scheme expenses1 are deducted from members
account balance monthly on an accrual basis and are borne by members.

Scheme expenses2 are deducted from the daily fund price and are
borne by members.

Each fund under the MPF Scheme also bears other miscellaneous
charges and expenses as set out in the Trust Deed.

Compensation Levy

Nil

0.03% p.a. as imposed by MPFA

Deducted at the scheme's year-end (i.e. March 31)

1 Scheme Express for HAPFS

2 Management Fees for MPF Scheme

*Fees quoted include guarantee fee of 1% p.a.